Comment: The government will borrow to invest in new homes

Following Communities Secretary, Sajid Javid’s recent comments that the government will borrow to invest in new homes. Steve Mansour, CEO of CRL has responded:

“Sajid Javid’s aspiration to see 300,000 new homes a year built is encouraging, but it’s vital that the government doesn’t set expectations that cannot be met. We want to see a clear plan to support all UK developers, including small and medium-sized firms that fight daily to overcome bureaucracy and get building. These SMEs need to be freed to get on and develop houses and flats without being bogged down by red tape.

“It’s positive that the government is considering investing more into infrastructure by taking advantage of low interest rates: we view it as a clear signal to developers of all sizes to borrow and build. The construction industry has been lacking confidence, with predictions that the sector might flatline in 2018. Mr Javid’s comments are an injection of optimism which bodes well, especially when coupled with the government’s stated desire to make the home buying process cheaper, faster and less painful.”